Calculating Withholding on Payment Cancellations

PeopleSoft Payables handles reversals for withholdings on payment cancellations. Withholding calculations occur at payment time, so the system needs to know not to calculate withholdings again. After canceling, run payment and withhold posting. The system creates a new entry in the PYMNT_VCHR_XREF table for the regular amount (gross amount − withholding = regular amount) and a reversal entry on the WTHD_TRXN_TBL so that you will not report withholding twice.

Here is an example of how it works.

Some of the associated withholdings are not in Not Selected status (one is in Paid status).

Note: Two withholding classes are associated with the voucher in this example.

After Payment and Withholding Posting:

PYMNT_VCHR_XREF (after payment and withholding calculations):

Payment Count	Payment Type	Payment Gross Amount	Payment Select Status	Payment ID	Original Payment Count	Withhold Payment Count	Withhold Post Status
1	R	900.00 USD	P	150	0	0	P
2	W	75.00 USD	P	151	1	1	P
3	W	25.00 USD	N		1	2	U

PYMNT_VCHR_WTHD:

Payment Count	Withhold Payment Count	Withhold Entity	Withhold Type	Withhold Juris Code	Withhold Class	Withhold Amount
1	1	IRS	1099	FED	01	75.00 USD
1	2	IRS	1099	FED	02	25.00 USD

WTHD_TRXN_TBL:

Payment ID	Withhold Entity	Withhold Type	Withhold Juris Code	Withhold Class	Withhold Basis Amt	Withhold Liability Amount	Paid Amount
150	IRS	1099	FED	01	1000.00 USD	75.00 USD	0.00 USD
150	IRS	1099	FED	02	1000.00 USD	25.00 USD	0.00 USD
151	IRS	1099	FED	01	0.00 USD	0.00 USD	75.00 USD

After Payment Cancellation, Payment Posting, and Withholding Posting

PYMNT_VCHR_XREF:

Payment Count	Payment Type	Payment Gross Amount	Payment Select Status	Payment ID	Original Payment Count	Withhold Payment Count	Withhold Post Status
1	R	900.00 USD	X	150	0	0	X
2	W	75.00 USD	P	151	4	1	P
3	W	25.00 USD	N		4	2	U
4	R	900.00 USD	N		0	0	U

PYMNT_VCHR_WTHD:

Payment Count	Withhold Payment Count	Withhold Entity	Withhold Type	Withhold Juris Code	Withhold Class	Withhold Amount
1	1	IRS	1099	FED	01	75.00 USD
1	2	IRS	1099	FED	02	25.00 USD
4	1	IRS	1099	FED	01	75.00 USD
4	2	IRS	1099	FED	02	25.00 USD

WTHD_TRXN_TBL:

Payment ID	Withhold Entity	Withhold Type	Withhold Juris Code	Withhold Class	Withhold Basis Amount	Withhold Liability Amount	Paid Amount
150	IRS	1099	FED	01	1000.00 USD	75.00 USD	0.00 USD
150	IRS	1099	FED	02	1000.00 USD	25.00 USD	0.00 USD
151	IRS	1099	FED	01	0.00 USD	0.00 USD	75.00 USD
150	IRS	1099	FED	01	−1000.00 USD	−75.00 USD	0.00 USD
150	IRS	1099	FED	02	−1000.00 USD	−25.00 USD	0.00 USD

Consider the following points when canceling payments with withholding.

Canceling Withholding Schedules

If withholding has been paid and the withholding payment needs to be canceled as well, you must cancel this separately. It will not be canceled just because the regular payment is canceled. Alternatively, you may use the Withholding Adjustment page to adjust withholding.

Canceling a Payment, Changing Withholding Details, and Reissuing the Payment

If you cancel a payment and want to change the withholding details for the voucher and reissue the payment with withholding recalculated, you must:

Cancel the payment.
Delete the withholding schedule on the voucher.
Add the withholding schedule amount back to the regular payment schedule. That is, consolidate the withholding schedule with the regular payment schedule.
Change the withholding details.
Save the voucher.
Run the Pay Cycle Application Engine process (AP_APY2015) on the voucher or make a manual payment to reissue the payment with withholding recalculated.

Note that you:

Cannot delete or update a withholding schedule on a voucher if a related payment schedule has been paid or if the withholding has been posted.
Cannot delete or update a regular payment schedule if a related withholding schedule exists or if withholding has been posted.
Must cancel the related payment before you can delete withholding schedules.

Calculating Withholding on Payment Cancellations

Payment Cancellation Example

After Payment and Withholding Posting:

After Payment Cancellation, Payment Posting, and Withholding Posting

Further Considerations for Canceling Payments with Withholding

Canceling Withholding Schedules

Canceling a Payment, Changing Withholding Details, and Reissuing the Payment